TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB2526 by Flores (Relating to the promotional activities of certain alcoholic beverage license or permit holders.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($28,300) |
2007 | $0 |
2008 | $0 |
2009 | $0 |
2010 | $0 |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|
2006 | ($28,300) |
2007 | $0 |
2008 | $0 |
2009 | $0 |
2010 | $0 |
The bill would amend the Alcoholic Beverage Code as it relates to the promotional activities of certain alcoholic beverage license or permit holders.
Section 1 of the bill would allow the holder of a promotional permit to 1) engage in activities to promote and enhance the sale of an alcoholic beverage in this state, and 2) assist a permit or license holder in the sale or service of alcoholic beverages on their premises. It would also establish a promotional permit with an annual fee of $300 and require employees of the permit holder who conduct promotional activities to attend a commission-approved seller training program.
Section 2 of the bill would allow holders of a nonresident seller's permit to provide samples of liquor to the holder of a permit that authorized the retail sale of that liquor type.
Section 3 of the bill would allow a permittee to offer a rebate or refund on a product sold or offered for sale if the rebate or refund is accomplished by mail or internet.
Section 4 of the bill would allow manufacturers and wholesalers to advertise a promotional or sponsorship event to consumers and include in the advertisement the name and address of the retailer at which the event is held.
Section 5 of the bill would allow manufacturers or nonresident manufacturers to offer prizes to consumers as part of a promotional sweepstakes.
Section 6 of the bill would repeal Sections 36.06 and 37.13 of the Alcoholic Beverage Code which prohibit the holder of a manufacturer's agent permit or holder of a nonresident seller's permit from soliciting business from the holder of a mixed beverage or private club registration permit unless accompanied by the holder of a wholesaler's permit or the wholesaler's agent.
The bill would take effect September 1, 2005.
Section 1 of the bill would establish an annual fee of $300 for a promotional permit. The Alcoholic Beverage Commission reports that implementing the promotional permit would result in a small increase in permit fee revenue, but this would be offset by a reduction in the issuance of agent's permits. Thus, the net fiscal impact to the General Revenue Fund would not be significant.
The Alcoholic Beverage Commission also estimates that $28,300 would be needed in initial start-up costs. The start-up costs include programming changes to the Alcoholic Beverage Commission's current system ($5,000 in fiscal year 2006) and updates to publications and forms ($23,300 in fiscal year 2006).
Source Agencies: | 304 Comptroller of Public Accounts, 458 Alcoholic Beverage Commission
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LBB Staff: | JOB, JRO, VDS, SJ
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